Please Note: Amendments by 2015 Texas HB 2187, effective September 1, 2015, are included and noted in this summary.
Texas has special requirements for items listed as "Regulated Metal" as opposed to the general term "Regulated Material". Due to the similarity of the terms, references to "Regulated Metal" are bolded in this summary.
"Regulated Material" means Aluminum Material, Bronze Material, Copper or Brass Material, Lead Material, or Regulated Metal. (Lead Material added by HB 2187)
"Aluminum material" means a product made from aluminum, an aluminum alloy, or an aluminum by-product. The term includes aluminum wiring and an aluminum beer keg but does not include another type of aluminum can used to contain a food or beverage.
"Bronze Material" means a cemetery vase, receptacle, or memorial made of bronze; bronze statuary; or material readily identifiable as bronze, including bronze wiring.
"Copper or Brass Material" means (italicized text added by HB 2187):
(added by HB 2187) "Lead Material" means:
A power inverter or insulated or noninsulated copper wire or cable that contains copper or an alloy of copper or zinc and is of the type used by:
A copper or brass item commonly used in construction or by:
"Regulated Metal" consists of the following:
Condensing or evaporator coils from a central heating or air conditioning unit and communications wire burned to remove insulation are subject to special documentation requirements.
Bronze cemetery vases, receptacles, memorials, or statuary, and aluminum irrigation pipes are subject to special reporting requirements.
Lead acid batteries, fuel tanks, or PCB-containing capacitors are subject to special seller requirements and purchase restrictions.
Motor vehicles that include, contain, or enclose a scrap tire, and metal alcoholic beverage kegs are subject to special purchase restrictions.
"Metal Recycling Entity" is a business operating from a fixed location that predominantly:
"Department" means the Texas Department of Public Safety.
"Personal Identification Document" means a valid US state-issued driver's license, a US military ID card, or a state-issued personal ID certificate.
The law exempts:
The Department's summary report tracking sales of Regulated Metal exempts "regulated material sold by a utility company, municipality, manufacturer, railroad, cemetery, cable or satellite entity, or other business entity that routinely has access to regulated metal".
Transactions between Recyclers are exempt from the Recordkeeping requirements if the purchaser verifies the Seller's registration using the state database.
Transactions with Sellers that regularly sell Regulated Material in the ordinary course of their business are exempt from the automatic Hold requirements on Regulated Metal.
The Restrictions on Certain Property provision exempts sales or transfers by or on behalf of a Recycler, as well as fuel tanks that has been completely drained and rendered unusable in accordance with Texas Commission on Environmental Quality rules. The restriction on sales or transfers of a motor vehicle that that includes, contains, or encloses a scrap tire does not apply to a motor vehicle sold or transferred from another state.
Political subdivisions may require and issue a license or permit to operate as a Recycler, with a maximum $100 issuance or renewal fee that may not be increased without approval from the local governing body based on costs associated with law enforcement and administration. Political subdivisions with licensing or permitting requirements must submit information on the businesses to the state.
Recyclers must register with the state every 2 years; the law mandates a maximum registration fee of $250 annually and renewal fees with tiered late renewal penalties. The Department must send an expiration notice to registered Recyclers at least 45 days before their registration expires. The Department may establish registration qualifications by rule, which may include accepting copies of a license or permit issued by a local government.
A Recycler must make an electronic or written English record of and a Seller must present the following material for transactions involving Regulated Materials. A Recycler does not have to collect the signed statement of ownership or a copy of the Seller's ID if both are already on file and the information has not changed.
One of the following:
For condensing or evaporator coils from a central heating or air conditioning unit:
(Added by HB 2187) For Regulated Material paid for by:
If a Seller represents themselves as a Recycler, the purchaser must either:
Records must be retained for 2 years, or 91 days for video recordings, or 181 days for a digital photograph, in an "easily retrievable" format.
(added by HB 2187) A Recycler must preserve for 2 years:
Records must be available for inspection within 72 hours after the time of purchase. On request, a Recycler shall permit a Texas peace officer, a Department representative, or a representative of a political subdivision that issues a Recycler license or permit, to inspect, during the Recycler's usual business hours, the Recycler's records, Regulated Material in the Recycler's possession, or an application for a cash transaction card submitted to the Recycler (italicized text added by HB 2187). The person seeking to inspect a record or material must:
Recyclers must send an electronic transaction report to the Department by the close of the Recycler's second working day after the date of acquisition. A Recycler is not required to include the amount of the purchase or a copy of the cash transaction card, debit card receipt, or check in the transaction report (italicized text added by HB 2187).
For a purchase of bronze cemetery vase, receptacle, memorial, or statuary, or an aluminum irrigation pipe, a Recycler must also notify the Department by phone, email, or the Department's website by the close of the business on the first working day after the purchase date in addition to the standard report, unless the Seller:
Recyclers may submit reports by fax if they receive an annual exception from the Department for having no available and reliable means of electronic transmission.
For an item of Regulated Metal, the Recycler must hold the item for the following unless the Seller regularly sells Regulated Material in the ordinary course of business:
A Peace officer may issue a 60 day hold on an item of Regulated Material by issuing the Recycler written notice specifically identifying item alleged stolen and informing the Recycler of the hold requirements.
Under Section 1986.038.(b), a metal recycling entity may not pay for Regulated Material in cash unless they are registered with the state and licensed or permitted by their political subdivision, if applicable. The Department may also prohibit cash payments by metal recycling entities that fail to comply with the Reporting requirements. Political subdivisions may not enact more restrictive limits on cash payments after January 1, 2011.
(added by HB 2187) A Recycler may only pay for Regulated Material by:
If the Seller presents a cash transaction card issued by a Texas Recycler or the Recycler obtains a copy of the Seller's card from the Recycler's records:
An application for the issuance or renewal of a cash transaction card must include:
A Recycler may approve an application upon receipt and issue a cash transaction card; the Recycler must mail the issued card to the address provided on the application for the card. A cash transaction card is not transferrable, is valid for up to 2 years, and must include:
A Recycler must preserve for 2 years:
A recycler may not purchase Regulated Material from the general public more than 15 consecutive hours in one day or later than 9 PM.
A Recycler must maintain in a prominent place at their business, in open view to Sellers, a notice in 2-inch lettering that states the Recycler's usual business hours as well as the following, which may be on a sign with other information a Recycler is required to display:
A PERSON ATTEMPTING TO SELL ANY REGULATED MATERIAL MUST PRESENT SUFFICIENT IDENTIFICATION AND WRITTEN PROOF OF OWNERSHIP REQUIRED BY STATE LAW.
WARNING: STATE LAW PROVIDES A CRIMINAL PENALTY FOR A PERSON WHO INTENTIONALLY PROVIDES A FALSE DOCUMENT OF IDENTIFICATION OR OTHER FALSE INFORMATION TO A METAL RECYCLING ENTITY WHILE ATTEMPTING TO SELL ANY REGULATED MATERIAL.
A Recycler must also post a 24-inch horizontal by 18-inch vertical sign that is readily visible to the Seller and that includes the following language:
TEXAS LAW PROHIBITS:
VIOLATION OF THIS LAW IS A MISDEMEANOR.
Before selling or transferring a lead-acid battery, fuel tank, or PCB-containing capacitor that is included with another type of scrap, the Seller must obtain a written and signed acknowledgement from the Recycler that the scrap contains one or more of the listed materials. A Seller may not sell or transfer a motor vehicle, an appliance, or any other scrap, used, or obsolete metal item that contains a lead-acid battery, fuel tank, or PCB-containing capacitor as a part.
A Seller may not sell or transfer:
The Restrictions on Certain Property provision exempts sales or transfers by or on behalf of a Recycler, as well as fuel tanks that has been completely drained and rendered unusable in accordance with Texas Commission on Environmental Quality rules. The restriction on sales or transfers of a motor vehicle that that includes, contains, or encloses a scrap tire does not apply to a motor vehicle sold or transferred from another state.
Displaying a false or invalid personal identification document, making a false material statement or representation, displaying or providing information a person knows is false or invalid, displaying another individual's identification, or violating the Payment Restrictions are all prohibited acts.
(added by HB 2187) The Public Safety Commission, after notice and an opportunity for a hearing, may impose an administrative penalty on a person who violates the Reporting provision after September 1, 2015. The amount of the penalty may not exceed $1,000; each day the violation occurs or continues to occur is considered a separate violation. In determining the amount, the Commission shall consider:
(added by HB 2187) The enforcement of the administrative penalty may be stayed while the order is under judicial review if the person pays the penalty to the clerk or files a supersedeas bond with the court in the amount of the penalty. A person who cannot afford such may stay enforcement by filing an affidavit as required by the Texas Rules of Civil Procedure, subject to the right of the Commission to contest the affidavit. The Attorney General may sue to collect the penalty. A proceeding to impose an administrative penalty is considered to be a contested case under TX Government Code Chapter 2001. If any element of the offense occurred before September 1, 2015, the offense is considered to be committed before this penalty was effective and must be governed by the former law.
Failure to obtain a required local license or permit is a Class B misdemeanor, or a Class A misdemeanor if the defendant has been previously convicted of the same. A violation is also subject to a maximum $1,000 civil penalty for each violation, with each day a violation occurs or continues to occur counting as a separate violation. The Department or a political subdivision may enjoin the business operations of a Recycler for 30 to 90 days if the Recycler has not submitted an application for a required registration, license, or permit.
Knowingly committing a Prohibited Act is a Class A misdemeanor, or a state jail felony if previously convicted of a violation of Subchapter A-3: Practice by Certificate Holders.
Knowingly failing to register, representing oneself as a Recycler or performing collection services without a registration, failing to report, or failing to abide by the hours for purchasing material are Class A misdemeanors punishable by a maximum $10,000 fine, or a state jail felony if previously convicted of the same. Municipalities may retain 10% of the fine; the rest is to be used to finance administration of the law and fund grants distributed under the prevention of scrap metal theft grant program established by Tex. Gov. Code Section 411, Subchapter N.
Knowing purchase of stolen Regulated Material or insulated communication wire that has been burned and is not accompanied by acceptable documentation is a Class A misdemeanor, or a state jail felony if previously convicted of the same. A court may also order a convicted Recycler to cease doing business for 30 days from the date of the order for each violation, or 180 days for each violation if previously convicted of a violation under the Criminal Penalty section (Section 1956.040).
Knowing sale of stolen Regulated Material is a state jail felony, or a 3rd degree felony if previously convicted of the same.
If an offense under the Criminal Penalty section also constitutes an offense under any other law, the actor may be prosecuted under the Criminal Penalty or the other law.
A person who violates the requirements of the Restrictions on Certain Property provision commits a misdemeanor punishable by a maximum $1,000 fine and/or 60 days confinement in the county jail.
A person who violates this chapter or a rule adopted under this chapter is liable to this state for a maximum $1,000 civil penalty for each violation. The amount of the penalty shall be based on the seriousness of the violation; the history of previous violations; the amount necessary to deter a future violation; and any other matter that the justice may require. However, a civil penalty may not be assessed for violations of the requirements for Registration, Reporting, Prohibited Acts, or Hours of Purchase.
The Department shall deny an application for a certificate of registration, suspend or revoke a certificate of registration, or reprimand a registered person who:
A person commits a Class B misdemeanor if the person solicits the purchase of Regulated Material at a location other than a business location at which the material is produced as a by-product in the ordinary course of that business.
A person who violates this chapter or a rule adopted under the chapter, including such issued by a local government in compliance with the Preemption provision, is guilty of a Class C Misdemeanor; however, if such also constitutes an offense under another section of the chapter, the person may only be prosecuted under the other section.
A person whose application for a certificate of registration is denied, whose certificate of registration is suspended or revoked, or who is reprimanded is entitled to a hearing before the Department if the person submits to the Department a written request for the hearing.
The law creates a 12 member Advisory Committee appointed by the Director of the Department of Public Safety, consisting of the following:
The Advisory Committee elects its own presiding officer to 2 year term (no term limit) and meets annually and at call of the presiding officer or Director. No compensation or reimbursement is granted.
The Department must submit annual reports to both chambers of the Texas Legislature on the number of Recyclers who complied with the registration requirements and the total number of Recyclers identified statewide; the report must include information submitted by political subdivisions. The Department must also make a list of all registered Recyclers available to the public on its website, containing a Recycler's name, physical address, and the name of and contact information for a representative of the Recycler.
The Department must establish a state electronic reporting system to track sales of Regulated Metal and post a summary of reports to its website. The sales report must include the frequency with which a person presents Regulated Materials for sale to a Recycler by county or region. The report must maintain the confidentiality of all information provided, including the name of the seller, the price paid for the purchase, and the quantity of Regulated Material purchased. The report shall exclude "regulated material sold by a utility company, municipality, manufacturer, railroad, cemetery, cable or satellite entity, or other business entity that routinely has access to regulated metal".
The Department may enter into a contract to operate the statewide reporting system, but the contract must require that the contractor maintain the confidentiality of all information and specify that the contract may be terminated for a violation of confidentiality. The Department must investigate complaints alleging that contractors have failed to maintain the confidentiality of information related to sales of Regulated Material.
The Department may investigate a person who engages in a practice that violates the law or a complaint filed with the Department against a registered Recycler.
The Department is permitted to issue broad rules on various implementations of the law.
Political subdivisions may adopt rules, charters, or ordinances or issue regulations imposing more stringent standards that do not conflict; the law specifically mentions political subdivisions creating recordkeeping thumbprint requirements and/or reporting requirements. A political subdivision must provide a minimum 30-day notice followed by public hearing prior to enacting a prohibition on the sale or use of a recyclable product. Political subdivisions may not enact limits on cash payments after January 1, 2011.
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This summary of State Metals Theft Laws is being viewed on this website under license and is owned and copyrighted by Institute of Scrap Recycling Industries, Inc. ("ISRI"),1615 L Street, N.W., Suite 600, Washington, DC 20036.